Bravura Solutions Limited · ASX:BVS
Bravura Solutions — H1 2020 Earnings Presentation
25 slides from Bravura Solutions's earnings presentation, Feb 20, 2020
Slide 1: 1H20 Results Presentation
1H20 Results Presentation 20 February 2020
Slide 2: Important notice and disclaimer
Important notice and disclaimer The information contained in this document (including this notice) and discussed at this presentation (collectively, the Presentation) has been prepared by Bravura Solutions Limited (Bravura). The Presentation is subject to the conditions outlined below. Your receipt
Slide 3: Agenda
Agenda 1 Key Highlights 2 Segment Highlights 3 FY20 Outlook 4 Appendices
Slide 4: 1H20 Results on Track
1H20 RESULTS ON TRACK ▪ Bravura delivered revenue growth of 6.0%1, EBITDA growth of 7.3%1,2 and NPAT growth of 21.1%1,3; excluding acquisitions, revenue grew 2.9%1, EBITDA 7.7%1 and NPAT 16.6%1 ▪ Group EBITDA margin expanded to 18.8% (18.6% in 1H19) reflecting continued operating leverage expansion
Slide 5: 1H20 Key Highlights
1H20 KEY HIGHLIGHTS Market needs continue to evolve A$m 1H19 1H20 % chg ▪ Bravura’s long-term growth is driven by clients’ need to address speed to market for new products, the growing importance of a seamless digital experience, ongoing changes in financial services regulation, and pressure to incr
Slide 6: 1H20 Results on Track
1H20 RESULTS ON TRACK ▪ Wealth Management revenue up 0.6% and EBITDA down 11.5%. A$m 1H19 1H20 $ chg % chg EBITDA margin decreased to 28.6% in 1H20 (32.5% in 1H19). The lower EBITDA and margin result reflected lower licence fees of Wealth Management1 90.4 91.0 0.6 1% A$2.0m in 1H20, compared to A$8.
Slide 7: 1H20 Results – Impact of Acquisitions
1H20 RESULTS – IMPACT OF ACQUISITIONS Excluding Including ▪ Both acquisitions are reported in the Wealth Management segment A$m, 1H20 acquisitions Acquisitions acquisitions Wealth Management1 87.0 4.1 91.0 ▪ Midwinter and FinoComp businesses are performing as expected with strong sales pipelines. Ac
Slide 8: Strong Long-Term Revenue and Earnings Growth
STRONG LONG-TERM REVENUE AND EARNINGS GROWTH Revenue (A$m) EBITDA (A$m) 1H 2H 1H 2H 257.7 49.1 221.5 191.9 38.6 184.7 130.3 25.3 32.6 152.1 118.6 89.9 98.4 20.0 25.0 14.4 80.4 17.5 11.9 127.4 135.1 9.4 25.5 23.7 94.8 93.5 102.9 18.5 18.2 71.7 13.1 8.1 1 FY15 FY16 FY17 FY18 FY19 1H20 FY15 FY16 FY17 F
Slide 9: Strong Growth in Recurring Revenue
STRONG GROWTH IN RECURRING REVENUE Recurring revenue (A$m) ▪ Recurring revenue is up 17% in 1H20 compared to the pcp and Project fees (A$m) 221.5 comprises 78% of total revenue Licence fees (A$m) 10.2 ▪ Recurring revenue has grown as new clients are added and existing 191.9 clients broaden their use
Slide 10: Strong Financial Position
STRONG FINANCIAL POSITION ▪ Bravura is in a robust financial position, with cash of A$100.3m at balance date. A$m 30 Jun 2019 31 Dec 2019 Bravura continues to evaluate a pipeline of additional acquisitive and organic growth opportunities Cash 194.8 100.3 Trade receivables 23.7 41.4 ▪ Bravura acquire
Slide 11: Wealth Management
WEALTH MANAGEMENT ▪ Revenue up 0.6% and EBITDA down 11.5%. EBITDA margin A$m 1H19 1H20 $ chg % chg decreased to 28.6% in 1H20 (32.5% in 1H19) Segment revenue 90.4 91.0 0.6 1% ▪ The lower EBITDA and margin result reflected lower licence fees of Segment EBITDA 29.4 26.0 -3.4 -11% A$2.0m in 1H20, compa
Slide 12: Funds Administration
FUNDS ADMINISTRATION ▪ Revenue up 19.3% and EBITDA up 43.5%. EBITDA margin increased A$m 1H19 1H20 $ chg % chg to 44.4% in 1H20 (36.9% in 1H19) Segment revenue 37.0 44.1 7.1 19% ▪ The segment benefitted from higher licence fees of A$3.2m in Segment EBITDA 13.7 19.6 5.9 44% 1H20 compared to A$0.7m in
Slide 13: Midwinter – Financial Planning Software
MIDWINTER – FINANCIAL PLANNING SOFTWARE Revenue components Transaction details and financials ▪ Bravura acquired Midwinter for A$50m in August 2019 InvestmentLink ▪ The acquisition provides Bravura with a greater coverage of the financial services value chain Implementation Background ▪ Midwinter to
Slide 14: Midwinter – Financial Planning Software
MIDWINTER – FINANCIAL PLANNING SOFTWARE AdviceOS Financial Adviser Platform Digital Solutions • Used by financial advisers to deliver personal • Scalable online advice to end consumers via services, managing relationships and web or mobile devices providing advice documents face to face or via telep
Slide 15: FinoComp – Registry Agnostic Microservices
FINOCOMP – REGISTRY AGNOSTIC MICROSERVICES Revenue components Transaction details and financials ▪ Bravura acquired FinoComp for A$25m in October 2019 ▪ Strong operational leverage on the back of significant R&D spend, combined with Features excellent sales opportunities for FinoComp with leading UK
Slide 16: FinoComp – Registry Agnostic Microservices
FINOCOMP – REGISTRY AGNOSTIC MICROSERVICES Regulatory tools Intermediary tools Back office components TierDrop CoCa ForeSight Cobalt Insight MPM SSAD Charge Def Toro MIFID II 10% MIFID II Advanced Cost base Investor Model Single source Adviser and Charge depreciation Ex-post costs transaction calcul
Slide 17: FY20 Outlook
FY20 OUTLOOK Strong sales pipeline with a growing number of transformational opportunities ▪ Bravura’s strong sales pipeline is driven by continuing project activity with existing clients and significant sales opportunities from new clients, supported by expansion into new markets, segments and acqu
Slide 18: Appendices
RS bravur v solutions Appendices
Slide 19: Statutory Income Statement
STATUTORY INCOME STATEMENT A$m 1H19 1H20 $ chg % chg Wealth Management 90.4 91.0 0.6 1% Funds Administration 37.0 44.1 7.1 19% Interest income 0.0 0.8 0.8 nm Revenue from continuing operations 127.5 135.9 8.4 7% Total operating expenses -102.7 -103.6 -0.9 -1% Depreciation and amortisation1 -3.9 -9.4
Slide 20: Statutory Statement of Financial Position
STATUTORY STATEMENT OF FINANCIAL POSITION A$m 30 Jun 19 31 Dec 19 Cash 194.8 100.3 Trade receivables 23.7 41.4 Other current assets 18.1 24.2 Total current assets 236.6 165.9 Intangible assets 113.5 192.8 Other non-current assets 30.0 75.5 Total non-current assets 143.5 268.3 Total assets 380.2 434.
Slide 21: Statutory Cash Flow Statement
STATUTORY CASH FLOW STATEMENT A$m 1H19 1H20 A$m 1H19 1H20 Receipts from customers 127.4 127.8 Payments to suppliers and employees -116.7 -123.4 EBITDA 23.8 25.5 Interest received 0.0 0.9 Trade, other debtors, and contract assets -12.3 -14.9 Income taxes paid -2.7 -9.2 Total operating cash flow (dire
Slide 22: Bravura's Ecosystem
BRAVURA’S ECOSYSTEM Bravura provides digital enterprise software solutions supporting sophisticated financial services products across front, middle and back office, including digital delivery across multiple devices to advisors and end consumers. Products Wrap Superannuation Life Private wealth and
Slide 23: Bravura Addresses Key Client Challenges
BRAVURA ADDRESSES KEY CLIENT CHALLENGES Challenges faced by participants… … can be solved by Bravura technology Evolving and complex 1 regulatory environment ✓ Regulatory risk management Demand for mobile and 2 “self-directed” technology Increasing ✓ Leading technology and innovation demand Bravura
Slide 24: Sonata Simplifies Legacy Client Systems
SONATA SIMPLIFIES LEGACY CLIENT SYSTEMS Siloed, disparate legacy IT systems Unified, customer-centric solution Advisors and Clients Advisors and Clients Move to a Digital multi-channel delivery Call centre 1 Call centre 2 Call centre 3 true customer Single, configurable code base centric Product Pro
Slide 25: For more information, visit: www.bravurasolutions.com/investors/
For more information, visit: www.bravurasolutions.com/investors/ investors@bravurasolutions.com